5 Important Factors Relied Upon To Determine Salary

By Mkamba M Juke

Time recorders are also called time clocks, punch clocks or clock card machines. It is an electronic or mechanical timepiece used to help track the number of hours an employee has worked. The time recorder helps the timekeeper to have official records of the hours worked by the employees for purposes of calculating the pay owed to an employee. Therefore, the time recorder plays an important role in determining the salary. Other factors relied upon to determine salary include:

· The levels and kind of required skills

One of the important factors responsible for influencing the amount of pay is the nature of work performed. To practice in many settings, a requisite credential is required. In case you have credentials from the university you can expect to receive a higher salary compared to a person with high school qualification. The salary will be commensurate with your level of qualification.

· Geographic location

The levels of unemployment/employment affect regions differently. Areas where the living cost is high are known to pay higher wages. There are different websites that give important information that allow people to compare the living cost in various areas. In case you are considering relocating, you may consider the websites for more information. This will help compare the living cost in many international cities, highlighting the best locations to live.

· Supply & demand of labor

The labor statistics play an important role in monitoring the supply and demand of many occupations. The salary attributable to a particular job is dependent on the supply and demand. The skills that one has, determines the level of demand. Many times the demand varies across different locations. Those who possess a marketable skill, knowledge and credentials are normally on high demand. As a result, they attract a higher salary.

· Profitability of the company

Employees who work in an organization that is highly profitable stand a better chance of getting higher wages compared to employees who work in an organization that is less profitable.

· Compensation philosophy

Some employers embrace the philosophy of paying salaries and wages that are above the industry standards for purposes of retaining and attracting the best pool of workers available in the industry. Some pay the least salaries while others pay the 50th percentile. The larger organizations can afford to pay higher wages while smaller companies pay smaller wages.

Employees seek for jobs that they can hold for as long as they want it. It can prove distressing to hold a job that is not guaranteed. Employees who feel the jobs they hold are secure will often accept less compared to jobs in an unstable environment.